Trump Signs Order To Ban DEI Practices In Federal Contracts
President Donald J. Trump has taken another sweeping step to reshape federal policy, signing an executive order that bars federal contractors and subcontractors from engaging in diversity, equity, and inclusion (DEI) practices—marking a significant escalation in his administration’s push to restore merit-based standards across government operations.
According to a White House fact sheet, the order directs the Office of Management and Budget to issue compliance guidance and identify sectors where DEI policies are currently embedded. Federal agencies are instructed to cancel, terminate, or suspend contracts with companies that refuse to eliminate what the administration describes as “racially discriminatory DEI activities.”
The directive also tasks the attorney general with prioritizing enforcement of contractual violations tied to DEI policies, while ensuring expedited review of civil rights complaints filed by individuals who believe they have been impacted by such practices.
In addition, the Federal Acquisition Regulatory Council will be required to revise federal procurement rules, removing provisions that conflict with the administration’s stance. The White House has defined DEI-based practices as those that treat employees or contractors differently based on race or ethnicity rather than individual merit.
President Trump argued that such policies not only undermine fairness but also harm efficiency within the federal system.
“DEI activities also create unnecessary costs by reducing the pool of available labor by artificially limiting companies to hiring or promoting certain individuals,” Trump said.
He further warned that these added costs are ultimately passed on to taxpayers through federal contracts, while also noting that some contractors have continued to use or conceal DEI-related policies despite earlier directives.
This latest action builds on a broader executive order issued shortly after Trump returned to office in January 2025, which required federal agencies to dismantle DEI offices, eliminate related positions, and remove performance standards tied to such initiatives.
Trump sharply criticized the previous administration’s use of so-called “Equity Action Plans,” arguing they institutionalized waste and discrimination within the federal government.
“The public release of these plans demonstrated immense public waste and shameful discrimination. That ends today,” he said.
Since returning to the White House, Trump has aggressively used executive authority to advance his policy agenda, signing more than 240 executive orders amid what his administration describes as congressional inaction on key national priorities.
Beyond government reform, the president is also turning his attention to another rapidly evolving issue: the future of college athletics.
At a White House summit attended by lawmakers, conference commissioners, Charlie Baker of the NCAA, and leaders from the U.S. Olympic and Paralympic Committee, Trump warned that the explosion of name, image, and likeness (NIL) payments could destabilize higher education.
“The whole educational system is going to go out of business because of this,” Trump said, emphasizing the urgency of reform.
When pressed on why he was focusing on college sports amid ongoing global tensions, Trump remained direct: “The whole educational system is going to go out of business because of this.”
The president indicated he is preparing a sweeping executive order within days aimed at forcing congressional action on NIL regulations. He acknowledged that any such move would likely face legal challenges, potentially sending the issue back through the courts and reopening debates surrounding prior rulings that enabled widespread athlete compensation.
Trump also criticized a recent court-approved settlement that transformed the NCAA’s compensation model, calling it “horrible” and warning it has thrown the system into chaos.
“I thought the system of scholarships was great,” Trump said, referring to the traditional model in which student-athletes received tuition, housing, and other benefits rather than direct pay.
As the administration continues to challenge entrenched policies—from federal hiring practices to collegiate athletics—Trump’s latest moves signal a broader effort to reassert merit, reduce regulatory burdens, and confront what he and his allies view as systemic overreach across American institutions.